Bonds Rally With New Issues

Big Foreign Interest
Marks First Leg
Of U.S. Refunding

By

Deborah Lynn Blumberg

Updated Feb. 7, 2007 12:01 a.m. ET

Treasury bond prices rallied yesterday, led by longer maturities, as a bout of overseas buying, a successful auction of three-year notes and a chunk of corporate-debt issuance boosted government bonds.

The benchmark 10-year note was up 11/32 point, or $3.4375 per $1,000 face value, at 98 29/32. Its yield fell to 4.765% from 4.808% Monday, as yields move inversely to prices. The 30-year bond gained 19/32 point to 94 9/32 to yield...